Tesco Japanese unit C Two-Network said it will buy the Fre'c food store chain, which is being restructured under government oversight.
"If the rehabilitation plan progresses as planned, (C Two-Network Co) is expected to acquire Fre'c's business in around August of this year," C Two-Networks.
No financial details of the deal were disclosed.
The government-backed Industrial Revitalization (IRC) is overseeing the restructuring of Fre'c Co, which operates about 30 discount food stores, taking over its debts while it finds a buyer, an IRC spokesman said.
"This is an essentially a merger-and-acquisition deal," he said. Fre'c is struggling under debt incurred on real estate investment and some unprofitable stores, the IRC said.
Last July, Tesco paid $220 million for a 94.5 per cent stake in C Two-Network.
AFP